PNG’s link to 65 countries, 29 per cent of global GDP

Posted by The National

THE construction of the PNG-CIAIPP was signed in November 2017 between PNG’s authorities and CRI under China’s multi-trillion-dollar Belt Road Initiative (BRI).
The signing was to facilitate the transfer of State land-use rights for the construction of agricultural industrial parks that feature godown facilities for the shipping of fresh green produce exports to China.
Under the agreement, the Chinese company will own the right to use land in the Eastern and Western Highlands for 99 years for BRI-linked agriculture industrial parks.
PNG’s active participation in the construction of the BRI-linked infrastructure will greatly enhance PNG’s socio-economic growth by generating enormous opportunities for international and regional cooperation, Chinese Ambassador to PNG Xue Bing told Xinhua last year.
In 2014, China and PNG established a strategic partnership featuring mutual respect and common development, which has charted the course of the development of bilateral relations.
Two years later, the two countries signed several cooperation documents, including a framework agreement on development cooperation on production capacity to bring their cooperation into the BRI “express lane”.
In May 2018, the Asian Infrastructure Investment Bank approved PNG’s application to join the bank, which has accelerated the pace of PNG to participate in the BRI construction.
PNG is rich in natural resources, including mineral reserves, forests, agricultural and fishery resources, with the fishery sea zone covering an area of 2.4 million sq/km.
“All of these are priority areas for the two countries to enhance industry cooperation under the BRI,” Xue said.
PNG is set to benefit from greater international trade opportunities due to BRI’s global trade network that aims to trigger cross-border business activities.
BRI was unveiled and implemented by China in September and Octorber 2013 to revive a new silk route to open doors to vast opportunities in trade, business and investment.
It ventures into trans-border bilateral and joint-cooperation in various fields and sectors – education, medical research, tourism and cultural promotion, technology and industries, digital economy, just to name a few – for mutual benefits.
BRI was mooted by China’s paramount leader Xi Jinping to leverage on each other’s strengths for the greater benefit of Asean’s 650 million populace.
Initially launched as China’s One Belt, One Road (OBOR) Initiative, it was renamed BRI and today the infrastructure links, by road, railway, sea and air stretch from China to the Middle-East, Africa, Europe, Russia and the Scandinavian and Nordic countries and Asia and Southeast Asia.
HSBC Holdings Plc group executive Stuart Gulliver had described BRI as reshaping the future world economy by:

• IMPROVING the infrastructure of overland and maritime routes to drive trade and capital flows between the east and the west;
• CONNECTING more than 65 countries across Europe, Asia and Africa covering 63% of the world’s population and 29% of global Gross Domestic Product, and ultimately making it easier for goods and services to reach the growing middle classes as their disposable income increases; and
• ENGAGING with companies of all types and sizes both inside and out of China in the infrastructure, telecommunications, trade, sustainability and financing sectors covering manufacturers, raw goods suppliers and logistics providers as well as financial and professional services firms, and more.
  BRI’s infrastructure funding in Asia alone is expected to cost at least US$1.7 trillion (K6.6 trillion).

HSBC chief executive for Greater China said: “We see this as a big opportunity for a lot of people, not just for China, but for the destination countries and for any companies who work on such projects. It will certainly stimulate economic development along BRI.”

Go to this link for more: https://www.thenational.com.pg/pngs-link-to-65-countries-29-per-cent-of-global-gdp/